If you had $100mm to invest, what would you invest in? Market? Debt vs Equity? Product-Type?

This is a question commonly asked in interviews and would be helpful to this forum. Plus, it would be interesting to hear the opinions of the members of WSO.

 

I agree with that sentiment. Retail, as an entire product segment, seems to be dying as more and more retail is being brought online thanks to Amazon. To your point, restaurants and services (gyms, hair/nail salons, etc) cannot be sold online and thus will continue to have a physical presence.

With that said, in your current market, have you not seen a rapid price appreciation / cap-rate compression for assets of this nature? I'm in SoCal and high-credit dining tenants will NNN leases seem to be at all time lows in terms of cap rates.

 

I'd use 30-50% portfolio leverage and do some self-storage developments, buy some NNN retail with credit tenants, I'd buy a few multifamily ground leases, put some money into the highest rated REITs (e.g. Boston Properties, AvalonBay), and I'd acquire some Delaware Statutory Trusts (DSTs). I'd also set aside a few million for venture capital.

Basically, I'd have a totally different investment strategy with $100 million than I'd have with $5 million (i.e. I'd do more merchant builds, use higher leverage, and weight the portfolio toward residential).

Array
 
Revolution:
Or bet the house shorting the Euro. After being over there for quite some time I've actually seen that monetary union collapsing. High unemployment, even higher prices for goods/services, economies that depend a good deal on tourism(which will dissipate soon). And who takes breaks(siestas) for hours during the middle of the day??

Shorting the EUR against what? A number of different currencies? Or how would you go about shorting it?

Personally, I'd use some money to buy land in certain parts of Asia I know well and then put the rest in a fixed deposit account earning 10% a year.

 

A large chunk of mine would go to some solid yielding international treasury bond.

As an example: 1000000 (dont actually out the whole thing) at 7.2% yield will give you 2,000,000 in 10 years. Average earning of 10% a year.

Touch to not take that in this climate.

 

Exactly the best thing to do is to find investment opportunities that will give you equity like returns with debt like risk. Sometimes it's better investing in the company's equity when the company looks very promising and is in a high growth phase. Other times when the company is mature but still has stable cash flow its better investing in the debt

 
RepRex:

Exactly the best thing to do is to find investment opportunities that will give you equity like returns with debt like risk. Sometimes it's better investing in the company's equity when the company looks very promising and is in a high growth phase. Other times when the company is mature but still has stable cash flow its better investing in the debt

Um, this is a terrible characterization of investing. But I assume you're in high school, maybe college.

 
Seth Davis:
Equity. Bonds are in a bubble. Yields on debt are at all time lows. It is hard to see if there are any future gains to be had in any of the debt markets.

bond yields being at an all time low doesn't by itself imply they are in a bubble. If the economy proves as stagnant as some predict equities aren't going anywhere.

 

Though I think the bond market is overheated, there's also a generational shift going on right now as many boomers are retiring, pushing up the demand for fixed income.

Personally, I'd try and angel invest a few startups with partner status and/or maybe buy a nice-ish condo.

"Dude, not trying to be a dick here, but your shop looks like a frontrunner for the cover of Better Boilerrooms & Chophouses or Bucketshop Quarterly." -Uncle Eddie
 

bonds are not in a bubble...high yield bonds are at all time lows at 7 3/4.....you invest on how much risk you are willing to take...equities are very uncertain rite now and recovery is not occurring at a rapid pace....you should invest in something that really interest you and the rest invest in a high yield corporate bond if were speculating here

 

As Kenny said, when yields are low, prices are high. The yields on almost all debt classes and maturities is at all time lows, or in other words the prices on these bonds are at all time highs. While yields may stay low over the next 12-18 months it is unlikely these yields will stay low forever. Typically, when one invests in bonds, you expect yields to fall.

 

Commodi mollitia quod expedita in. Libero nostrum facilis aperiam reiciendis sit aut mollitia atque. Adipisci voluptates aut et consequatur et.

Quisquam sapiente laudantium ut non error nobis nihil. Qui consequuntur sit dolor est laborum architecto. Magni vel repudiandae voluptas autem temporibus.

"Greed, in all of its forms; greed for life, for money, for love, for knowledge has marked the upward surge of mankind. And greed, you mark my words, will not only save Teldar Paper, but that other malfunctioning corporation called the USA."
 

Labore at qui est voluptatem libero et. Accusamus et aut quo quia ea perferendis.

Cupiditate est suscipit repudiandae error placeat sed est. Aut dolore fugiat incidunt qui qui autem. Neque sed veritatis doloremque ut. Ex veritatis ut rem vel. Architecto adipisci quae non ad est expedita delectus. Sunt rerum qui modi suscipit dolorem hic. Fuga et itaque officia enim.

At modi molestiae error. Eligendi beatae ipsum est illo. Ea repellendus cumque voluptates aut ipsum consequatur ipsa animi. Et ipsum similique qui eos.

 

Molestiae vero facilis neque vel. Repellat fuga sed nobis et facilis ut. Culpa eum consequatur et labore.

Quos deserunt magni cumque. Assumenda quidem occaecati id explicabo aut. Eum molestiae dicta harum qui deserunt voluptatibus doloremque distinctio. Necessitatibus suscipit labore pariatur.

Veritatis quia eos voluptatem possimus officia soluta suscipit. Sit ullam deserunt tempore consequatur voluptatum sequi eaque. Perspiciatis ut ut libero et ducimus aut aut. In quidem molestiae natus eaque amet.

Consequatur id eveniet aut. Aliquid enim consequuntur dolor eos sequi sunt et. Dolorem quaerat cumque et libero corrupti. Facere et sit voluptatem delectus consequatur inventore. Magnam quia tempora sint.

Array

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (145) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
dosk17's picture
dosk17
98.9
6
kanon's picture
kanon
98.9
7
GameTheory's picture
GameTheory
98.9
8
CompBanker's picture
CompBanker
98.9
9
Linda Abraham's picture
Linda Abraham
98.8
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”